What is Form 8962, Premium Tax Credit?
If you purchased health insurance in 2016 through Healthcare.gov or your state’s Health Insurance Marketplace, you may qualify for a tax credit based on your income. Form 8962, Premium Tax Credit, is used to determine the amount of your Premium Tax Credit.
When you enrolled for your health coverage on the marketplace—if you qualified for the Premium Tax Credit— you had two options for receiving it:
- Take the credit when you file your return.
- Take some or all of an estimated credit amount during the year as an Advance Premium Tax Credit (APTC). The Marketplace sent the APTC directly to your insurance company, so you paid less each month.
Regardless of which choice you made, when you enter the information from your 1095-A, we’ll calculate your Premium Tax Credit and prepare Form 8962 for you to file with your tax return.
If you received the Premium Tax Credit as a monthly advance (APTC) to reduce your healthcare premiums, the credit amount was an estimate. It was based on your 2016 estimated income.
If your income for 2016 was more than you estimated, you may have to pay back some of the credit.
If you received the Premium Tax Credit as a monthly advance (APTC) to reduce your healthcare premiums, and your income for 2016 was less than you estimated, you may receive an additional amount.
Or, if you didn’t take the monthly advance credit, and you qualify for it, you will get the entire credit on your 2016 tax return.
Follow this link to get more information on the Premium Tax Credit.